When PAYable launched over a decade ago, it wasn’t born out of hype or investor pressure. The founding team had already been exploring ways to enable cashless transactions for Sri Lanka’s small businesses when a conversation with Reyaz Mihular, now on the Board of Advisors, added clarity and conviction. Reyaz recalled seeing a street vendor in New York swipe a credit card using a tiny mobile device—simple, portable, and effective. That real-world example clicked. It wasn’t the origin of the idea, but it gave the team the nudge they needed to move fast and build what would become one of Sri Lanka’s most accessible SME payment solutions.
At the time, digital payment solutions were only accessible to large businesses. Most small merchants, who make up nearly 70% of Sri Lanka’s economy, were excluded due to high entry costs and rigid banking requirements. PAYable was built to change that. Co-founded by Sujith Subasinghe and Yohan Wijesiriwardane and backed early by Tony Singarayar, Mihular helped fund and shape the vision: offer free card payment devices to SMEs, charge a minimal transaction fee, and drive meaningful financial inclusion.
In this candid interview, Mihular reflects on PAYable’s beginnings, the importance of governance, overcoming resistance to digital payments, and where he sees the future of fintech in Sri Lanka and beyond.
PAYable has become a standout player in Sri Lanka’s fintech space. What was the original vision and gap you aimed to fill?
PAYable began as a start-up by Sujith and Yohan, incubated by Tony Singarayar. When I came on board, we were inspired by simple technology like Square in the U.S., which allowed small vendors to accept card payments. Back then, only large retailers in Sri Lanka had access to card machines, and banks required a minimum monthly turnover that most SMEs couldn’t meet. We saw an opportunity to democratise digital payments by offering free card devices to small merchants and charging commissions on transactions they make. It was a capital-heavy model, but it enabled anyone, from roadside kadés to pop-up stores, to accept cards. More than just a business, our goal was to empower SMEs and improve financial inclusion.
In a start-up culture that often prioritises speed, PAYable focused on governance from day one. Why was that important?
Governance wasn’t an afterthought; it was foundational. Tony, Rajendra Theagarajah, now our Chairman, and I are all chartered accountants by training, so systems, structure, and accountability were second nature. While most start-ups rush to scale and focus solely on product and tech, many falter due to weak governance. We believed strong internal controls would give us the resilience to face challenges and earn the trust of partners, regulators, and customers. That early decision has paid off and helped us scale sustainably while building a credible, transparent fintech brand.
What were some early challenges you faced in driving digital payment adoption, especially among SMEs?
The biggest hurdle was behavioural. Sri Lanka’s SME sector is still heavily cashbased. Merchants saw cash as more immediate and preferred it over digital transactions, even though card payments were settled the next day. Though the MDR fee – a commission on transactions – was relatively low, it was still seen as a loss, especially by businesses operating on thin margins. As a result, many merchants offered card payments only when customers had no cash. This, in turn, delayed our ability to recover costs, since the devices were provided for free and revenue was earned only when they were actively used.
To address this, we introduced a minimum monthly usage policy. If merchants didn’t meet the threshold, a nominal cover charge applied. Over time, as awareness and card usage grew, adoption improved. Today, we’re proud to have crossed 100 billion in volume through our platform.
With Sri Lanka’s digital economy accelerating, what’s the next growth frontier for PAYable?
Our early systems were hosted on physical servers in banks and offices. Now we’ve fully moved to the cloud, which gives us scalability, security, and the ability to operate across borders. We can now process transactions for any country from Sri Lanka, without needing physical infrastructure elsewhere. That’s a massive advantage.
We’re eyeing expansion into emerging markets like Africa, where demand for digital payments is growing but adoption is still behind. With the right local partners to manage device distribution and marketing, we can replicate our model at scale. Sri Lanka is a small market of around 20 million people, but our technology is built for global use. We’re already in talks, and international expansion is firmly in motion.
As someone who’s led both global institutions and a fintech start-up, what role do you see fintech playing in Sri Lanka’s economic resilience?
Fintech is essential to Sri Lanka’s economic transformation. We enable cashless, convenient transactions via card, QR, or bank transfers, especially for sectors traditionally left out of the formal financial system. But to make a real impact, fintech needs policy support.
In India, for example, cash payments above INR50,000 are not allowed. That pushes digital usage and brings more transactions into the formal economy. In Sri Lanka, our existing regulation only disallows cash payments above Rs500,000 as tax-deductible business expenses, but this barely affects the informal sector. Those who make such large cash payments aren’t taxpayers to begin with.
I’ve long advocated for more practical limits on cash transactions, maybe Rs100,000 or Rs150,000. It doesn’t have to be drastic, but starting somewhere will drive change. Increased digital transactions mean greater transparency, higher tax compliance, and ultimately, more equitable economic growth. Fintechs like PAYable, banks, and other digital players are doing their part. But we need government policy to complement that effort. Only then can we unlock the full potential of digital inclusion.
Looking ahead, what’s next for PAYable?
We’ve come a long way from a small team and a bold idea to a company processing millions of transactions and actively exploring international markets. The journey was not easy. Like any start-up, we’ve faced challenges and setbacks. But through it all, we’ve stayed committed to the core idea: enabling financial access for all. As I often say, “When the going gets tough, the tough gets going.” That spirit defines our team and our journey. And we’re just getting started.